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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Kirloskar Oil Engines Limited (NSE:KIRLOSENG) due to its excellent fundamentals in more than one area. KIRLOSENG is a financially-healthy , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Kirloskar Oil Engines here.
Excellent balance sheet with solid track record and pays a dividend
In the previous year, KIRLOSENG has ramped up its bottom line by 52%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, KIRLOSENG also outperformed its industry, which delivered a growth of 21%. This is what investors like to see! KIRLOSENG's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. KIRLOSENG seems to have put its debt to good use, generating operating cash levels of 1.68x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
KIRLOSENG is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
For Kirloskar Oil Engines, there are three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for KIRLOSENG’s future growth? Take a look at our free research report of analyst consensus for KIRLOSENG’s outlook.
- Valuation: What is KIRLOSENG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KIRLOSENG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KIRLOSENG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.